Medical Insurance Policies – Mediclaim

health Medical Insurance Policies Mediclaim

Of course you would have heard of Mediclaim and medical insurance policies that are offered by almost all insurance companies. This is an insurance policy that provides medical cover for both self and the dependents. This means that a person can get medical insurance for their spouse, parents and children.

There are a number of medical insurance coverage’s that are available with a number of variations. These insurance covers provide for the treatment, procedures, hospitalization and other associated costs for major and minor ailments. Along with the basic coverage, other add on coverage’s are also available. For this the insurance holder would need to pay extra premium.

The best part is that premiums paid for health insurance coverage’s are tax deductibles. Under the income tax rules, exemption is provided for the person who pays the health insurance according to Section 80D of the Income tax Act. The premium contribution is deducted from the income of the assessee. This deduction in the income is however given to individuals and members of Hindu Undivided Family.

In many of the health insurance coverage’s, pre-existing medical conditions may also be covered. For this additional premium may be charged by the insurance company. Some insurance companies may even provide a cover for diseases that may not be covered under the basic packages. There are insurance coverage’s that are also provided for annual medical checkups and day care.

In case of individuals, the exemption is applicable for self, spouse, dependent children as well as dependent parents. The dependency of the parents also needs to be proven. This can be shown only when the parent’s financial resources aren’t enough to meet their requirements. Those that are members of Hindu Undivided family can claim deduction for the contribution of health insurance premium for any member.

The deduction is given in the year that the premium has been paid. Moreover the premium should have been paid by cheque from the assessor’s bank account. The amount of heath insurance should have been paid from the income that is assessed for income tax.

For getting the deduction, the health insurance coverage’s should have been approved by the Central government. According to the Income Tax Act, the deduction criteria are Rs. 15,000 (maximum limit). Senior citizens are allowed a maximum limit of 20,000.

Senior citizens are defined as a person who is resident of India and is more than 65 years old during the previous year. Many new schemes for deductions have also been introduced to give further encouragement for those that want to purchase health insurance.

These changes for the deductions have now been effected from the assessment year 2009-2010. For those individuals that wish to support their parents, further support has now been provided. In addition for deduction for self health insurance, an individual is also eligible for tax deduction to a maximum limit of Rs 15,000 when they get health insurance coverage for their parents. Now an individual doesn’t need to prove that their parents are dependent on them. This means that children can pay for the health insurance coverage of their parents in addition to health insurance coverage that they may have taken.

The deduction for parents is in addition to the deduction that the individual will get for self, spouse and their children.

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